Profit source or public utility?
Profit source or public utility?
As of Thursday last week, toll road fees in Jakarta were
increased by an average of Rp 500. Those urban toll roads were
built and are operated by the private-sector company PT Citra
Marga Nusphala Persada and the state-owned PT Jasa Marga.
Based on the principle that public roads are part of the
public service provided by the government for the community,
there is no reason for the government to entrust the building of
toll roads to a private company. Private companies are obviously
profit-oriented, something which does not conform to the
government's duty to provide public utilities and infrastructure
for the people.
As we see it, the problem is that if the government lacks the
funds to build those toll roads, two basic questions may be
asked: First: Why didn't the government seek to obtain loans from
international financing institutions? This would prevent profit-
oriented private companies from taking part in the provision of
public utilities. Second: The funds required to pay for toll
roads as public infrastructure should not become a burden for the
people. The government could subsidize the private company in
question if necessary to prevent fee increases because high tolls
are a burden for the community and create a high-cost economy.
Why doesn't the government just take over the responsibility
for operating those public facilities?
We can understand that it is perfectly natural for a private
company to want to increase tolls to cover new investments. The
question remains, however, as to why the government gave private
companies the right to develop infrastructure in the first place.
After all, isn't the provision of public utilities and
infrastructure the government's responsibility?
-- Suara Pembaruan, Jakarta